The Chinese
government has cracked down on music and video sold over the Web,
bringing a total ban on audio handled via the insecure MP3 format.

The new laws, set
into motion by the Chinese Ministry of Culture, impose restrictions
over a whole host of Internet-related technologies. They include a
complete exclusion of online music or video companies based or funded
from abroad.

Chinese E-commerce
retailers will be required to apply for official licenses in order to
continue their practises and owners of data encryption software
(designed to allow secure transmission of confidential information)
will also have to be registered. Digital downloads "must not
include pirated, smuggled or otherwise illegal" material.

A report from
Beijing's state-run Xinhua news agency stated that the moves are
intended to protect the nation's intellectual property and develop a
healthy market. The announcement follows comments last year from
Chinese Information Minister Wu Jichuan stating that he planned to
clean up the "irregularities" regarding foreign investment.
Xinhua themselves, however, are part of the confusion as they own
shares in China.com, a mostly American-invested portal which floated
on the US stock exchange for $1.4 billion.

In the past two
years China's Web usage has soared from 2.1m to 8.9 million
subscribers; the authorities are struggling to maintain a firm hold
over the dissemination of information. To this end the government has
set up an Internet police force, threatening punishments to those who
pass off national secrets or trade in pirated products on the Internet.

While China is
often criticised for lagging behind the West, there can be little
doubt that some sectors in the United States are keen to see their
government take similar direct action. With several court cases
against MP3 pirates and distributors still pending, the Recording
Industry Association of America would be grateful for more state
assistance in bringing digital criminals to justice.